Justin: In the Feast of Being Able to. Amen.

I am the Walrus – Part 3

I heard a liberal commentator recently state that Republicans must be beside themselves when they are told that the tax rates are lower under Obama than under Ronald Reagan. I immediately thought to myself, “Self, don’t hate this man. He’s just really really stupid. It might not be his fault.”

You see, the tax rates today are, indeed, lower than they were MOST OF THE TIME under Ronald Reagan. But here’s why: when Reagan took office, the top tax bracket was 70%, thank you Mr. Carter. The economy was majorly tanked in the 70’s. Instead of raising taxes and spending more money to try and fix it, Reagan lowered them, all the way down to 50% for those evil rich people. This was a major tax cut that drove Democrats insane with anger. However, as the 80’s progressed and quickly changed from depression to a time of major growth, the left accepted that to oppose Reagan’s next tax bill would be politically disastrous. So they cosponsored it.

Tax Reform Act of 1986 lowered personal income tax again, while raising corporate income tax to compensate. Now, the top bracket paid 38%. Then, in the last couple of years of Reagan, the top bracket paid 28% (which is not mentioned today).

By 1993 the rate was back up to about 40% for this top bracket. There it hovered until recent years… and all of my readers should remember this: the “Bush Era Tax Cuts”. That’s the phraseology news junkies hear in their sleep, so often it has been repeated in both praise and spite. The Democrats fought against these cuts, saying as usual, that the right wanted to “cut taxes for the rich on the backs of the poor”.

But despite the Democrats, the “Bush era tax cuts” passed. And the left has been trying to repeal them ever since. And thus, with the tax rate established by Reagan and Improved by G.W. Bush, Obama inherited a tax rate “lower now than under Ronald Reagan.” But they had little to do with it, they hate that it is so, and they openly work to returning to the 70% – 90% tax rate.

Here’s a homework assignment. It’s a skit that gets you +10 extra credit in Econ and Drama.

Pre-Skit Preparation

Step 1: Imagine how much more a million dollars per year is compared to what you now make annually. Incredible, isn’t it? How nice that could be.

Step 2: Now imagine that after years of trying and failing, working late nights, taking risks and going into debt, you finally find success and make your first million. And because you are self-employed, you write out your own tax checks to the IRS.

Skit

“Imagine that, honey, we’re now officially millionaires,” you say. “Did you ever think it could happen?” you ask with a smile.
Your loved one glances up at you from across the kitchen table. “How much is that check you just made out to the IRS?.”
You sigh. You hold the check up to see as you say it aloud. “Nine-hundred thousand dollars and twenty five cents.”
“Wow. Sure is nice to be a millionaire. I’m glad 50% of the country despises our very existence, aren’t you?”
“Indeed, I am.”

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